the 2013 Act gives the state discretion to decide on the multiplier factor. The state said if the factor is increased for rural areas beyond 1, "budgetary costs of projects would increase making it incapable for the state to provide much need infrastructure in rural areas."  "Budgetary costs and investment in rural areas would get discouraged, if the factor goes beyond 1.1." 

2)Bombay high court has held Notifications are delegated legislations which cannot override statutory mandate."

3)The court said that there are no guidelines that require the state to limit the factor below 2 and hence the state’s decision lacked reasonableness, is bad in law and deserves to be set aside.

4) 

In a landmark judgment, the Bombay high court has paved the way for the state to pay higher compensation to farmers whose land it acquires for public projects.

 The court held that financial constraints or project cost escalations cannot be a reason to shortchange 

farmers

and set aside a government decision to fix a multiplier factor of 1.1 on market rates even though the law says it could be double the rate.

Dear Client,

As per act of 2013 farmers will get a compensation of four times the market value of the land and two times in the urban area for farmers whose land is acquired for industrial purposes under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act 2013, popularly referred to as Land Acquisition Act.

And

Eg.

Generally the collector rate is ½ or 1/3rd of the prevailing market price.  If the market price is Rs 25 to Rs 30 lakh per acre, the collector rate is Rs 8/10/12 lakh. Taking the average of 3 years and multiplying it by a factor of 1 or 2 in rural areas.